UNIVERSITY OF IMMACULATE CONCEPTION

Graduate School Second Semester SY 2018-2019

Name: QUEENIE MARIE O. ALAS Professor: MRS. EMMA V. SAGARINO

BA 200 – Quantitative Techniques in Business 3:00 P.M. – 6:00 P.M.

CRITIQUE PAPER 3
Implementation of Quantitative Management Techniques and Organization
Performance

I. Citation

The article of Implementation of Quantitative Management Techniques and

Organization Performance was introduced by Annop Tanlamai, Faculty of Chulalongkorn
University, Thailand.

II. Topic

This research article was intended to:

A) Determine usages of quantitative techniques among Thai companies

B) Find the relationship between implementation of quantitative management
techniques and organization performance

The authors also presented the following decision making models for Human
Resource Management in Organizations:

A) Break-even Analysis, Quality Control, Forecasting, Sampling, and Decision Model.

II. Main Ideas

The article gives emphasized to the following (i) definitions and concepts of
quantitative techniques, break-even analysis, quality control, forecasting, sampling, and
decision model (ii) categorizes the two major groups which are deterministic model and
probabilistic model, (iii) discussions on simulation model that helps analyse problems in
certain business situation, (iv) explains the theoretical perspectives that is believed that
the implementation of quantitative analysis techniques leads to better and more accurate
decision making of executives, which result in firms’ higher performance and (v)
Forecasting which is the most commonly used strategy. It’s applied not only in business
organizations but also in non-profit organizations that all need to predict their goals of
operation.
According to the study, Thai business organizations in general rarely apply
quantitative techniques. The most common technique used is Break-even analysis since
it is related to profit planning which many companies want to be informed about. Besides,
the method is easy to comprehend and doesn’t involve many mathematical skills.
Nevertheless, it’s still not widely popular.
 According to the result analysis, non-financial performance is positively influenced by
“Advanced Operations and Production Management Techniques” group. It composes of
important approaches such as Inventory Models, Maintenance and Repair Models,
Production Scheduling. Although the techniques are complicated to use and consist of
many conditions, they are mainly specified for planning and decision making in
production process in factories.

III. Conclusion

It was found from the study that quantitative techniques are not commonly used
among Thai companies. The most used techniques, i.e. Break-even Analysis, Means and
Standard Deviation, are simply to understand and do not require high level of
mathematical skill to do the analysis. The most important obstacles of not using
quantitative techniques are lack of understanding among employees and executives do
not realize the importance of the techniques. It was also found from the study that the
group of Advanced Quantitative Analysis Techniques has significant influence on financial
performance while the group of Advanced Operations and Production Management
Techniques has significant relationship with non-financial performance.

IV. Reflection

A. To benefit from implementing quantitative techniques, Thai companies must

increase awareness of their executives and train their employees to fully understand the
quantitative techniques and know how to utilize them properly.

B. Each technique should be applied to solve specific situations rather than general
issues. Moreover, the quantitative techniques should be regarded as one of the tools to
help business executives make better decisions. The outcomes from the analysis have to
be integrated with qualitative results in order to achieve the best decision. This will lead
to a long-term competitiveness.

C. The most important thing I’ve learned from this article, is that the lack of
knowledge of quantitative techniques among employees is the main reason that prevent
organizations from using quantitative techniques.

D. Regression Analysis was used to determine the relationship between degree of

implementing groups of quantitative techniques and organizational performance. It was
found that the group of Advanced Quantitative Analysis Techniques had significant
influence toward financial performance while the group of Advanced Operations and
Production Management techniques has a significant relationship with the non-financial
performance.

Thai companies must educate their executives to be aware of the benefit of using
quantitative techniques and to train their employees to fully understand and have the skill
of using quantitative techniques which will benefit the financial as well as non-financial
performance of the company.